• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Factors affecting the probability of bankruptcy: a panel data approach

Sundal, Håkon Kambestad; Hatlestad, Karoline
Master thesis
Thumbnail
View/Open
Master thesis.pdf (11.11Mb)
URI
http://hdl.handle.net/11250/300060
Date
2015
Metadata
Show full item record
Collections
  • Master Thesis [3749]
Abstract
This paper investigates the importance of firm-specific factors in determining or explaining

bankruptcy. By studying Norwegian firms from the period 2005-2012, we are able to

examine this using binary regression models. First, we identified potential financial

measures we believed to be associated with business failure. Then we selected 15 of these

that are potentially correlated with the occurrence of bankruptcy along with 3 firm-specific

characteristics. These measures were incorporated into different econometric models. During

analysis, the 15 financial measures were reduced to 5: Two profitability measures, two

solidity measures and one liquidity measure. We conclude that fixed effects are present in

the data. Controlling for them enables us to identify the impact of accounting ratios on the

probability of a bankruptcy more efficiently. In the logistic regression only two profitability

measures remain significant, yet when we construct a prediction model for business failure

this model has an overall accuracy of 74 %. Thus, we are also confident that incorporating

firm-specific effects in the model enables us to identify good measures of how accounting

data affects the probability of bankruptcy.

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit